Tuesday, April 29, 2008
FLEETWOOD SELLING IT'S FOLDING TRAILER DIVISION AND DOING OTHER THINGS TO GENERATE CASH
RV Business
Tuesday, April 29, 2008
Fleetwood Enterprises Inc. today (April 29) announced several developments and transactions, including the pending sale of its folding camping trailer division in Somerset, Pa.
In a statement, the Riverside, Calif.-based recreational vehicle and manufactured housing builder said all moves were related to the “anticipated retirement of $100 million aggregate principal amount of the company's 5% convertible senior subordinated debentures, which holders may put to the company on December 15.”
Fleetwood said it is exploring a range of transactions to generate additional funds for retiring the debentures, strengthening its balance sheet and maximizing shareholder value.
Transactions include:
• Fleetwood has signed a definitive agreement for the sale of Fleetwood Folding Trailers Inc. The company said that no further disclosure will be provided until either the sale closes or the transaction is terminated. Elden Smith, Fleetwood president and CEO, noted that the move allows Fleetwood to concentrate on the higher-volume RV and housing businesses, with a “particular emphasis on completing the turnaround of our travel trailer division.”
• Fleetwood announced that on April 10, it completed the sale of its 42.7-acre corporate campus in Riverside for a price of $23.5 million. The company has become a tenant and will lease about 20% of the complex. The location will continue to serve as the Fleetwood’s corporate headquarters.
• The company recently closed its two California-based supply manufacturing facilities and consolidated the remaining supply group businesses into its operating units. One facility was sold last week, generating almost $10 million in proceeds, while the other is being offered for sale.
• Fleetwood is deferring future payment of dividends on its 6% convertible subordinated debentures. The deferral will begin with the payment that would have been due on May 15.
• The lending syndicate for Fleetwood’s revolving line of credit and term loan, led by Bank of America as agent, has amended the credit agreement to help the builder reduce debt and improve liquidity.
• The company has the ability under an existing shelf registration statement to raise approximately $50 million from the issuance of common stock and expects to utilize at least $30 million of this availability.
"We remain fully committed to our core RV (motorhome and travel trailer) and housing businesses," Smith said. "We will continue to cut expenses, control overheads, and adjust the size of our businesses to reflect changes in these markets.
"…As soon as we have fully addressed the retirement of the debentures, we intend to aggressively pursue a strategy that will allow us to diversify and invest more in new markets and growth businesses, such as our military housing initiatives.”
Tuesday, April 29, 2008
Fleetwood Enterprises Inc. today (April 29) announced several developments and transactions, including the pending sale of its folding camping trailer division in Somerset, Pa.
In a statement, the Riverside, Calif.-based recreational vehicle and manufactured housing builder said all moves were related to the “anticipated retirement of $100 million aggregate principal amount of the company's 5% convertible senior subordinated debentures, which holders may put to the company on December 15.”
Fleetwood said it is exploring a range of transactions to generate additional funds for retiring the debentures, strengthening its balance sheet and maximizing shareholder value.
Transactions include:
• Fleetwood has signed a definitive agreement for the sale of Fleetwood Folding Trailers Inc. The company said that no further disclosure will be provided until either the sale closes or the transaction is terminated. Elden Smith, Fleetwood president and CEO, noted that the move allows Fleetwood to concentrate on the higher-volume RV and housing businesses, with a “particular emphasis on completing the turnaround of our travel trailer division.”
• Fleetwood announced that on April 10, it completed the sale of its 42.7-acre corporate campus in Riverside for a price of $23.5 million. The company has become a tenant and will lease about 20% of the complex. The location will continue to serve as the Fleetwood’s corporate headquarters.
• The company recently closed its two California-based supply manufacturing facilities and consolidated the remaining supply group businesses into its operating units. One facility was sold last week, generating almost $10 million in proceeds, while the other is being offered for sale.
• Fleetwood is deferring future payment of dividends on its 6% convertible subordinated debentures. The deferral will begin with the payment that would have been due on May 15.
• The lending syndicate for Fleetwood’s revolving line of credit and term loan, led by Bank of America as agent, has amended the credit agreement to help the builder reduce debt and improve liquidity.
• The company has the ability under an existing shelf registration statement to raise approximately $50 million from the issuance of common stock and expects to utilize at least $30 million of this availability.
"We remain fully committed to our core RV (motorhome and travel trailer) and housing businesses," Smith said. "We will continue to cut expenses, control overheads, and adjust the size of our businesses to reflect changes in these markets.
"…As soon as we have fully addressed the retirement of the debentures, we intend to aggressively pursue a strategy that will allow us to diversify and invest more in new markets and growth businesses, such as our military housing initiatives.”
